The Background Story

Manston a.k.a. Kent International Airport is an ex-RAF base in north-east Kent, just west of Ramsgate. It passed from the RAF to Wiggins, then PlaneStation, owners of EUJet (a budget passenger airline). EUJet went bust, and in August 2005 the administrators sold Manston to Infratil, a New Zealand-based multi-national infrastructure investor.

There is a "Section 106 Agreement" (S106) between Infratil and Thanet District Council (TDC) which regulates how Infratil can use Manston - they can't suddenly decide to turn it into a spaceport and launch satellites, for example. The scale of Infratil's planned growth is enough to require the S106 to be renegotiated, which would require a period of public consultation lasting 6 months.

The S106 states that Infratil isn't allowed to schedule any night flights, although a scheduled flight that arrives late can actually land. A night flight is any take-off or landing between 11pm and 7am. Infratil have said they want more night flights.

Many more people have a stake in this than just Infratil and TDC - East Kent residents under the flightpaths, particularly in Ramsgate, but also in the Wantsum villages, Herne Bay, Whitstable and Canterbury will all be affected to some degree. Environmental groups, transport lobbies, government bodies, wildlife groups and others also have an interest. The non-partisan KIA Consultative Committee provides a valuable forum for all the interested parties to meet and discuss.

A key issue for local residents is noise. Obviously, the nearer a plane is (in both distance and height) the louder the noise; and if everything else is particularly quiet (at night) it will sound louder anyway. Which is why flightpaths, plane heights, flight times and monitoring are so important.

TDC have a duty to do their best to regenerate and energise Thanet, which includes some of the most deprived areas of Kent. Infratil have spent £30m on Manston so far, and have yet to make their shareholders a profit. All the East Kent residents would welcome something that benefits them. We need a win-win-win solution.

Council told to disclose legal advice over night flights

Thanet Council has been ordered to make public legal advice it received over controversial night flights from Manston Airport. The council caused controversy when it entered into an agreement in 2005 with the airport’s operators Planestation that permitted additional scheduled flights to take place beyond 11pm.

At the time, many residents in the area were dismayed, saying they faced noise disruption. There were claims that the change was one that should have required planning permission. Council chiefs had initially refused to disclose the advice of its lawyers, relating to a variation in the terms of what is known as a Section 106 agreement.

It rejected a request made under the Freedom of Information Act, saying the advice was legally privileged information and there was no public interest in releasing it. But now an information tribunal has officially ruled that the council was wrong.

A panel that considered a formal appeal said councillors had already referred to the legal advice during the course of a public council meeting when the issue of the impact of night flights had been raised. As a result, the full contents of the lawyers’ advice, which addressed the issue of whether the change in policy needed planning permission should be released, the panel concluded. In a statement, the council insisted it had not deliberately sought to suppress the information. The statement said:

“Thanet District Council is committed to providing as much information as possible to the public. However, the council took legal advice in this case and we were advised not to release any information which would jeopardise the future of a passenger service at Kent International Airport.”

kentonline 2nd Aug 2006

Direct air link to US cleared for take off

Long-promised direct flights between Kent and Virginia look set to take off next year. Senior representatives of Norfolk International Airport, Virginia, and Kent County Council are poised to sign an agreement that paves the way for new aviation links from May 2007.

A weekly charter service between Norfolk and Manston would be operated by Cosmos in the UK and CI Travel in the United States. Norfolk Airport Authority has agreed to become a financial partner and is understood to have pledged half the start-up costs. The proposed service builds on a Memorandum of Understanding between the state of Virginia and Kent signed in Richmond, Virginia, last June. One of its stated aims is the creation of an air bridge between the two regions to promote business, education and leisure links.

Speaking from Fairfax, Virginia, Cllr Alex King, KCC deputy leader, said:

"A deal is close to being finalised and I expect the final arrangements to be completed soon. Thorough investigations have revealed a market for a charter flight between Kent and Virginia. It will get an extra lift from the 400th anniversary of the establishment of the first colony at Jamestown by the three boats that sailed out of the Thames from Gravesend. It is rather fitting that this new opportunity comes on the 400th anniversary of the epic tale of the first settlers."

Kent-based consultants Paul Tipple and Tony Freudmann of FT International, who both previously worked for PlaneStation, the collapsed former owner of Kent International Airport, Manston, and low-fares airline EUjet, have investigated the feasibility of a service.

Their report has convinced US and Kent officials that it would be viable, given sufficient financial backing. However, KCC, already bitten by its £100,000 cash injection in the failed EUjet venture, has refused to invest in the proposed venture. Norfolk Airport Authority chairman Peter Decker said:

"The history of England and Virginia is legendary. This is a tremendous opportunity to be the air gateway for international visitors coming to the Jamestown 2007 festivities. 'And also for local travellers to see one of the most beautiful parts of Great Britain."

Norfolk International Airport is the major airport serving south east Virginia and northeast North Carolina. Scheduled airlines currently using the airport include American, Continental, Delta, Northwest, Southwest, United Express and US Airways.

kentonline 4th May 2006

Airport's new owners 'in for the long haul'

Steve FitzgeraldKent International Airport could be as busy as Glasgow Prestwick in five years, according to Manston’s new boss. The forecast comes just weeks after Infratil, the New Zealand investment company, bought the Thanet airport from the administrators of former owners PlaneStation for £17 million.

Infratil already owns Glasgow Prestwick which has seen a surge of growth in recent years, employing 500 people directly with a further 3,500 jobs related to the airport. Steve Fitzgerald, chief executive of Infratil Airports Europe, said:

"Sure, this could become another Glasgow Prestwick within five years. There are a lot of parallels between the two operations. Glasgow Prestwick is probably five years ahead of Manston at the moment. We’ll be targeting Manston in a slightly different direction. But in terms of can it get to two to two and a half million passengers, can it get to 34,000 tonnes of cargo? Yes."

The catchment areas are similar with the main difference that round-the-clock flying was permitted and local people seemed to be wholeheartedly behind the airport.

"People are used to it and understand the positives the airport brings."

He pledged to re-engage with the local community and speak to residents about Infratil’s plans. Infratil has already notched up an early success by winning back the custom of freight operator MK Airlines, which defected to Europe last year after complaining about high landing fees. On the passenger front, Mr Fitzgerald has spoken to dozens of airlines about the advantages of Manston.

He is optimistic that a scheduled airline will sign a deal before next summer. But he said it was unlikely to be on a similar scale to EUjet, grounded by financial problems after less than a year. Mr Fitzgerald said EUjet started with too many routes without having enough time to build brand recognition and customer loyalty. He said:

"EUjet tried to replicate a Glasgow Prestwick operation overnight when it was built up there over 10 years by Ryanair. It can be done but it takes more patience. It’s arguably desirable to have several different airlines serving the airport and even some that aren’t based in the UK."

Mr Fitzgerald confirmed Infratil was in for the long haul, with plans for steady growth over the next 20 years.

"Our business model is a 20-year model and it shows that on a modest build-up of traffic, we’ll be losing money for three years. We think it’s an exceptionally good long-term investment. Infratil has a brand with a good long-term view and a track record of delivering returns for long-term investment."

kentonline 13th Oct 2005

KCC defends £100,000 airline gamble charge

Council chiefs have rejected claims that their decision to invest £100,000 of public money in EUJet was a gamble that backfired. Cllr Alex King (Con), Kent County Council’s cabinet member for regeneration and the man responsible, said he accepted the investment was high risk but claimed it had produced "a good return" for Kent by demonstrating that a budget airline could be viable from Manston.

KCC lost its £100,000 investment when EUJet faced financial problems. The authority subsequently agreed to put in an additional 15,000 Euros to provide "working capital" to PlaneStation, the company that owned Manston Airport but which recently went into administration. At the time, company bosses told KCC that the operation would collapse if it did not put in the additional money.

Cllr King was grilled over his decision when he appeared before KCC’s cross-party cabinet scrutiny committee on Thursday. He was challenged by opposition Labour members, who said that in view of a warning from officers that any investment would be "high risk", the decision "beggared belief". Cllr King said:

"If you look at the period over which EUJet operated, 300 jobs were created and more than 300,000 people flew the airline. That is not a bad return. Had we not made the investment, we might now be in a situation where no passengers were flying out of Manston, PlaneStation would be staggering along and there would be very little hope for the future."

He admitted that he had not formally consulted anyone else in KCC’s cabinet about the investment but denied he was under any obligation to do so. The money had come from the Kent Regeneration Fund, consisting of money raised from the sale of Kings Hill, near Maidstone. He said:

"There was no need or requirement on us to consult. I did inform colleagues and it was announced widely in the press and we got a lot of plaudits and praise for doing it."

Meanwhile, KCC’s finance director David Lewis, who also appeared before councillors, said:

"This was not a gamble but a carefully calculated risk. By definition, not all risks pay off and I am sorry that it did not work out and this particular risk did not pay off."

The sum was a tiny fraction of KCC’s overall budget of £1.3billion, he added.

kentonline 30th Sep 2005

Questions still remain over EUjet collapse

Mystery surrounds the delay in appointing administrators to failed airline EUjet. While Grant Thornton partners are sorting out the financial affairs of PlaneStation, the airline’s parent company that collapsed with estimated debts of £22million, and subsidiary London Manston Airport Plc, EUjet is not subject to the same rules.

The Irish-registered operator, which was grounded last week with the loss of at least 127 jobs and left more than 5,000 passengers stranded, is still run by its directors, including chief executive P J McGoldrick. The airline is subject to Irish law and an "interim examiner" is understood to have been appointed but this person does not have the power of administrators. Dr Michael Grimes, an airline consultant based in Ireland, said the delay suggested that the banks were happy with Mr McGoldrick:

"I would say he’s left PlaneStation holding the baby."

Administrators asked awkward questions, he added. The present situation left EUjet creditors "in limbo" not knowing against which company to claim. EUjet is clearly pinning the blame for its grounding on PlaneStation. Callers to its Shannon offices are told that flights have been suspended "due to financial difficulties experienced by our parent company PlaneStation".

This has angered Grant Thornton which blames PlaneStation’s demise on EUjet. A spokesman said:

"The airline consistently failed to meet the numbers and ran out of money and at that point PlaneStation wasn’t in a position to offer any more. At no time did the Bank of Scotland lend any money to EUjet. It all went through PlaneStation. PlaneStation kept pumping cash into the airline but the credit line eventually ran out. PlaneStation went to its bankers who said 'we’ve never lent a penny to an airline and we never will'."

Administrators hope their decision to keep around 70 staff at the airport will signal that it could quickly be brought back into use. But they warn it could take months to find a "credible" buyer. Meanwhile, Kent County Council, chastened by its failed gamble to pump £100,000 into EUjet, has rejected calls for an official investigation into what went wrong. Cllr Alex King, Cabinet Member for Regeneration, said:

"It would be unfortunate if anyone asked for a DTI inquiry."

He admitted KCC’s investment, from the Kings Hill development fund, had been a risk – he knew that many people had questioned EUjet’s viability – but risks had to be taken to lift the county. The opportunity to get a passenger airline operating out of Manston was a major opportunity that could not be ignored. And it was a significant achievement that EUjet had operated for nine months and carried more than 300,000 passengers. He dismissed speculation that the airport, a key plank in KCC’s economic strategy, could be used for housing development:

"The county council is determined that Manston will play its part in the transport infrastructure of Kent as an airport."

kentonline 4th Aug 2005

EUJet doomed from the start

Expert claims airline was doomed from first flight

EUjet was a flawed business model that was bound to fail, according to an airline expert. The low-cost airline and its owner PlaneStation, which also owns Kent International Airport at Manston, crashed into administration on July 26 after the Bank of Scotland pulled the plug on PlaneStation’s credit line, thought to be around £25million.

The collapse left thousands of passengers stranded overseas, cost hundreds of jobs and cast a shadow over the longer-term viability of scheduled services operated out of Kent. It was also embarrassing to Kent County Council which had invested £100,000 in the fledgling airline to bring it to Manston.

One expert who long ago pointed out potential problems with EUjet is Dr Michael Grimes, an airline consultant based in Cork, Ireland, close to EUjet’s registered base in Shannon. He warned Kent County Council, the Civil Aviation Authority and PlaneStation but says his warnings went unheeded. Speaking to Kent Business as joint administrators at Grant Thornton attempted to sort out the financial affairs of PlaneStation and London Manston Airport Plc – Irish-registered EUjet is subject to different rules – Dr Grimes said the business model was flawed in his view. He claimed the fare structure was unrealistically low and that the Fokker-100 aircraft used by EUjet were uneconomic and unreliable.

P J McGoldrick, the airline’s colourful Irish chief executive, whose son Stuart became EUjet commercial director, revealed that one plane had been out of service for most of the year. Dr Grimes said:

"They might have had a chance if they’d had a proper plane for the job but the Fokker-100 never made any money for anybody."

He claimed that leasing charges on the aircraft were exorbitant and he had serious concerns about P J McGoldrick. He was previously involved in Ryanair at a time when it was a loss-making airline. Kent County Council was aware that Mr McColdrick was also involved with an airline that collapsed in 2000 with reported multi-million pound liabilities and the loss of hundreds of jobs.

Dr Grimes said he had sought an investigation into the running of EUjet and PlaneStation but no action was taken. He claimed that his letters to KCC leader Sir Sandy Bruce-Lockhart went unanswered and telephone calls were blocked.

"These people have themselves to blame because all these deficiencies were notified to the relevant authorities, including Kent County Council, who did nothing."

He did not see much of a future for Manston as a passenger airport – it is already a successful freight terminal – except for shuttle services across the Channel. Cllr Alex King, KCC Cabinet for regeneration, defended the council’s investment in a private sector venture.

"EUjet would not have come to Kent without that £100,000. I do not regret it for one moment. That was an investment that brought an airline to Manston. That airline has demonstrated you can fly those routes. We believe that Kent International Airport has demonstrated its viability over many years as a cargo airport. We believe EUjet, against tremendous difficulties in the aviation world, has demonstrated the potential for Manston as a passenger airport."

Andrew Conquest, a partner with Grant Thornton, said:

"Our intention is to continue to operate the airport while we seek buyers for the business and we are currently reviewing the funding requirements to enable the airport to continue to operate in the short term."

kentonline 3rd Aug 2005

Council promises 'hard negotiations' with airport

A three month consultation has thrown up a range of concerns from residents in Thanet, Sturry and Herne Bay, that will be discussed with Manston airport owners, PlaneStation. Inappropriate penalties, inadequate noise monitoring, off-route aircraft, and concern that cargo flights may increase, were among the worries voiced. Council leader Cllr Sandy Ezekiel pledged that the local authority would "go into hard negotiations" with the airport owners over a revised Section 106 environmental agreement that will update the original five-year-old voluntary agreement that he described as "rather woolly". He said:

"People have taken the opportunity to put their views forward and some clear messages have emerged that will be taken into consideration as work gets underway on the successor to the 106 agreement. We need to provide better information to the public and noise monitoring needs to be improved."

Dr Hilary Newport, Kent director of the Campaign for Rural England, said her main concern was over night flying. She said:

"Night flying is a major issue for any airport, but especially for Manston, and it needs to be strictly controlled or it will seriously damage people’s quality of life. The town of Ramsgate is just 1,300 metres from aircraft touching down."

She said that the branch was so concerned about the potential impact of night flying on the residents of Thanet, it commissioned research by acoustic consultants Capita Symons. Noise monitoring was conducted at three locations around the airport. It said that readings taken as jet aircraft took off showed that night flying noise over Ramsgate exceeds Government and World Health Organisation guidelines. EUjet Fokker 100s registered a peak of 84.3 decibels, equivalent to a short blast of a pneumatic drill 30 metres away. Dr Newport added:

"Night flying is not allowed at London City, Belfast, Norwich and Southend airports because of the proximity of housing. CPRE Kent believes that Manston should be classified as a city airport for the same reason. The results of Capita Symons’ noise monitoring only confirm what hundreds of Ramsgate residents already know: aircraft over the town are unacceptably noisy, and they must not be allowed to come and go at any time of night. We need to make sure that night flying will, genuinely, not be part of the long-term plans for Manston. PlaneStation needs to confirm, once and for all, what is happening after September, then the residents of Ramsgate will know what chance they have of a getting a decent night’s sleep in the future."

But Stuart McGoldrick, group commercial director at EUjet, said the company is "very disappointed at the tone and content" of the "highly subjective" CPRE comments that "fail to grasp some of the key points relating to night flights from Manston". He said:

"Kent International Airport is pleased to confirm that it has not requested permission for any night flights for the winter season starting on October 30 as EUjet has received all the flight slots requested from outstation airports. The number of night flights operated this summer will be significantly fewer than allowed under the original 106 Agreement. Kent International Airport is aware of local sensitivity to night flights and has sought to reduce night flying throughout the summer to an absolute minimum. This winter there will be no scheduled night flying at all. The Fokker 100 aircraft – which is the type EUjet operates – is the quietest regional jet in operation anywhere in the world. The CPRE refers to the measurement of noise levels of aircraft taking off – EUjet has only night arrivals at Kent International Airport. In addition, whenever wind conditions allow all aircraft have a westerly flight arrival pattern specifically designed to minimise any impact on the local population.

Kent International Airport originally requested night flights for the summer season only, which resulted in permission to operate to the end of September being granted by Thanet council. Unfortunately, due to an administrative error on our part, the original Section 106 Agreement failed to allow for the fact that airlines the world over operate on a seasonal basis – with the summer lasting from the end of March to the end of October. EUjet is no different. Hence the request that the successor 106 Agreement, the terms of which we are far from taking for granted, take account of this fact of airline life."

Mr Ezekiel added:

"Night flying is an issue that particularly affects those under the flight path and we will look very carefully at the statistics from this summer’s night flights. The public has sent a firm message to the airport owners PlaneStation that they want to know more about the plans for the airport and what it will mean for them. People want to be kept fully informed about the airport’s development and growth. This successor to the original agreement needs to maintain people’s quality of life as far as possible. The council will use feedback from the public consultation to ensure that this happens and I am sure that all councillors welcome the extensive information from the public consultation."

Council chief executive Richard Samuel said the consultation provided a lot of information and that feedback showed strong support for the airport, its continued development and for economic growth of the area. He said:

"People have told us where they stand on this issue and it is most important."

kentonline 18th July 2005

New era dawns at Kent airport

Kent is finally joined by air to the rest of Europe. EUjet’s new low cost services got off to a flying start yesterday when the first flight - a Fokker-100 - took off from Kent International Airport at Manston, at 6.15am for Dublin. It marked the start of a service that is set to boost east Kent and turn Kent at last into an aviation hub. It has already brought 300 new jobs to Thanet and there could be 100 more over the next 18 months.

Flights on day one were 75 per cent full, with more than 600 passengers flying to Amsterdam, Copenhagen, Dublin, Nice and Girona. A smaller number flew back to Manston, reflecting the lack of marketing effort by EUjet at the destination airports. By the end of the year, EUjet will be flying to 22 destinations including Prague, Madrid, Milan, Palma, Malaga, Turin, Edinburgh and Manchester.

Airline and airport bosses were delighted with how smoothly things had gone. P.J.McGoldrick, EUjet chief executive, admitted he had been nervous just before take-off. He has invested millions of pounds of his own money in the venture. But the performance had exceeded his expectations. He said:

“We have had an incredible start to what I believe to be an exciting development, not just for EUjet but also for Kent and this airport.”

Airport staff had turned the aircraft around in 26 minutes. Airport staff also aim to get luggage from aircraft to carrousel within eight minutes of the aircraft’s arrival on the terminal apron.

Kent County Council has invested £100,000 in EUjet. Councillor Alex King, Cabinet Member for Regeneration, said it was a gamble that was well worth taking. September 1 was a turning point that would mark the transition of east Kent from the difficulties of the Eighties and Nineties to a successful economy of the early 21st-century.

“This is the first public demonstration of Kent becoming the Go To county.”

PlaneStation, the airport owner, has invested £3million in preparing KIA for the launch of EUjet. One hundred extra staff have been taken on, including security experts. Alastair Robertson, airport chief, said:

“I would anticipate that we will be employing at least an additional 100 people in the next 12-18 months.”

He added that substantial investment had been made in the latest hi-tec and sensitive x-ray equipment. Councillor Jeff Kirkpatrick, chairman of Thanet Council, welcomed the launch of EUjet:

“It is just a great day for everyone here in Thanet. As a bonus to the residents, we will enjoy the privilege of just being able to pop down here and fly away. Things are really happening and today is the day it takes off for real.”

He added that residents should not be concerned about noise because every step had been taken to minimise it. There was no night flying and EUjet is using “extremely quiet aircraft”. EUjet may be the first airline to use KIA but it is unlikely to be the last. Airport chiefs are in talks with two other airlines interested in operating to other destinations. And charter services to Florida are expected to start next year.

kentonline 1st Sep 2004